Why istoo much moneyaproblem?Moneyseeks by definitiona destination.The right amountof moneyfacilitates theefficient allocation of resourcesand exchange ofgoodsandservices.Too muchmoney is used to help to createbubbles.For example inshares (dotcomcrisis),housing(subprimecrisis)oras now ingovernmentdebt(Eurocrisis).Asthe bubble deflates,the money goes toanother placewhere there is nobubble yet.Thewinner orloser inthis gameis to a largeextent determined through informationasymmetry, To know somethingthat anothercan not know,because yousitin frontof thefinancialchain.

ImpoverishmentWith the sameingredients -low interest rates,readily availablecapitaland profits frompastbubbles-evenwhole companiesarebought. By saving costs, postponinginvestment and saleof undervaluedassets, the financialresults greatly improve ina short time.Then the companyis changed in its composing parts: it iscut up into partsor may be bundled withothercompanies that were bought-andsoldat a profit.Thisexitis particularlyattractive because ofthe widespread availability of borrowingmoneyat lowinterest rates.

Thefactthat moneyis earned,doesnot mean thatalso lastingeconomicvalue was created.Discontinuation ofproduct development,failure of maintenance and serviceand sending awaythecustomers of thefuture is what happens.The list of 'techniques ofimpoverishment' is endless,but the common denominator is that a long-term 'means of production'is convertedinto a one-time monetary gain.High salariestotop managers,investment bankersand private equityfunds for theireconomic "success"reinforcethis process.

The argumentthat this is precisely the 'creative destruction' that was the basis of capitalism,doesnot hold.The releasedproductionresources (people,land and capital) are used onlyto a small extend for newinnovative companies orkey infrastructure.Indeed,theseprojects cannot competein terms ofexpected returnwiththe lure ofa lucrativenextround of'blowing bubbles'.

Social ResponsibilityWhatdoes this have todo withthe riotsin London?Travelling above ground in London theerosion is visible,whilethe prosperity oftheCity shines in the distance."Everyoneis responsible forthe shopwindowshedestroys" they say.However,these arethe people that harvest the bitterfruits ofthe 'impoverish-model'.Any kind ofperspective is lacking.They have noprospect of ajob,any kindof property and no hope that the next generationwillbe better off than the last.

There issomething else that links the hoodiesfromTottenhamtothese executives, investment bankersand investmentfunds.A lack ofbroadsocialresponsibility:one groupdemolishesshops,theother our economic activity.After the last(banking)crisis the impoverish-game is in full swing again, afterabrief respite.A game in whichthe government (taxpayers) as aregular"loser"nowhas comethe limitsofitsabsorbency.

SolidarityAfter yet anothercrisisreconsideration of theeconomic game is due. Government, industry andthe bankingsector must start again to work for real causes and with more concern forsolidarity.Companies should not only be there to make a profit, but should also ask themselves what they do for the communty.A government that presentsarealvisionfor the futureof society.And banks thatfocus primarilyon supportingentrepreneurs toexpand theirrealbusiness.

Solidarity must also be sought inhigher employment rates forpeople on benefits, a smarter taxation of investment-vehicles, fairdistribution ofpension costs andcappingrewardsin business.This process will, in the currenteconomic context, beassociated withlower returnsfor shareholders.But in the longtermjit will lead tostructurally higheryields.

A small comment. In the 19th Century England ruled the waves. But around 1900 it was clear that Germany would take over the lead very soon. What had happened? William Engdahl (in A Century of War) says that the banks found it much more profitable to invest their money in far away places instead of in the English industry. That's why this industry could not compete anymore at the end of the Century.Our position is worse. The Money Masters find it more profitable to use tricks to get all the assets from countries and people in their own hands, instead of lending the money to people who will create wealth with it. ( See Citation 20.)

About Me

'Mission statement'.
I am convinced that jewish individuals and groups have an enormous influence on the world. The MSM are, for almost all people, the only source of information, and these are largely controlled by jewish people.
So there is a huge under-reporting on jewish influence in the world.
I see it as my mission to try to close this gap. To quote Henry Ford: "Corral the 50 wealthiest jews and there will be no wars." `(Thomas Friedman wrote the same in Haaretz, about the war against Iraq! See yellow marked area, blog 573)
If that is true, my mission must be very beneficial to humanity.